Oct 19, 2021 Newsdesk Latest News, Rest of Asia, Top of the deck  
Aristocrat Leisure Ltd’s proposed AUD3.9-billion (US$2.9-billion) acquisition of online gambling platform provider Playtech Plc could rise to a valuation multiple 15.5 times Playtech’s adjusted 12-month earnings before interest, taxation, depreciation and amortisation (EBITDA), rather than 11.4 times as mentioned by the suitor, said a Monday note from David Bain, an analyst at Riley Securities Inc.
Slot machine and online gaming content provider Aristocrat announced on Monday a suggested cash acquisition of London-listed Playtech at GBP6.80 (US$9.40) per share, a 58 percent premium to Playtech’s closing price on October 15.
The intent of Aristocrat to “review Playtech’s regulatory exposure” was “likely” to lift “purchase valuation closer to 15.5 times trailing 12-month” adjusted EBITDA, wrote Mr Bain.
Aristocrat had mentioned in a presentation filed on Monday with the Australian Securities Exchange: “If the acquisition proceeds to completion, Aristocrat intends to conduct a review of the jurisdictions in which Playtech’s business operates, and the nature of Playtech’s business in certain jurisdictions to determine alignment with Aristocrat’s risk appetite and regulatory licences to operate.”
Mr Bain added: “We believe Aristocrat will likely shed certain Asian and other markets Playtech operates, boosting the multiple paid for Playtech.”
The Riley Securities analyst further observed: “While Aristocrat intends to utilise Playtech to focus more broadly on accelerating growth of technology/content supply in North America – amongst other initiatives – we do not see a major competition/market share shift at this point.”
A Monday note from Donald Carducci and Michael James, of JP Morgan Securities Australia Ltd, said that Aristocrat acquiring Playtech’s “platform abilities” would allow Aristocrat “to capture distribution fees and associated content licensing”.
The JP Morgan analysts added: “The benefit of using content to drive recurring revenue with platform agreements cannot be overlooked.”
May 23, 2023
May 22, 2023
Jun 02, 2023
Jun 02, 2023
Jun 02, 2023
Genting Singapore Ltd says Lam Yi Young has resigned from his role as deputy chief executive of Resorts World at Sentosa Pte Ltd. The latter firm is an indirect wholly owned subsidiary of Genting...Jun 01, 2023
Alfastreet, a manufacturer of electronic gaming machines,...Jun 01, 2023
Casino equipment maker Sega Sammy Creation Inc is tweaking...Jun 01, 2023
The iGaming segment in Asia “has grown rapidly” since...May 31, 2023
Showing slot machine players – via animations on the...May 31, 2023
Macau stocks in likelihood “have been punished too much...May 31, 2023
There are foreign companies still interested in investing...May 31, 2023
Thailand could pass the necessary enabling legislation for...May 30, 2023
China will remain a key market for Asian gaming...May 30, 2023
Alejandro Tengco (pictured in a file photo), chairman and...May 30, 2023
There are “plenty of reasons” for the global gaming...May 30, 2023
Gaming equipment provider International Game Technology Plc...May 30, 2023
The Global Gaming Expo (G2E) Asia 2023 Special Edition:...May 29, 2023
Austria-based gaming equipment maker and operator Novomatic...May 25, 2023
Sports betting and online casino operating platform...May 24, 2023
The business performance in Asia of gaming content and...May 18, 2023
The organisers of Global Gaming Expo (G2E) Asia 2023...May 17, 2023
Gaming content and equipment supplier Light & Wonder...May 16, 2023
Casino equipment maker Sega Sammy Creation Inc is to...May 09, 2023
Casino slot machine and digital gaming content provider...May 05, 2023
The Global Gaming Expo (G2E) Asia event in Singapore is the...May 04, 2023
An adviser to a Thailand parliamentary committee mulling...(Click here for more)
US$8.1 billion
Macau’s casino gross gaming revenue in the five months to May 31